SR-07-23-1957-5F~/~~ ~~
CITY OF SANTA MONICA
~ ~ ~ ~ ~ ~!
DATE
TO:
FROM:
;SUBJECT:
-<.., yw
July 16, 195?
Gity Council ~~/
Attentiono R. M, Dorton, City Manager `-
Sd. A. Hard, City Controller ~~_
s~`~~4,*~~- Y,t
Increase of Faithful Performance bond coverage v ;fir ~ ~ j~ ~ ~ Y
certain municipal employees '~ ~-'~.~ 4,, , ., ~ s ~;
to T ~ 'p ~ ~j \-
Hamra gcl~'-'-'~~~ .a.
~-+-i Lii ~s V
~~~~ E):~'inlu
a ~i•~ r . ; .~ t$
_.. ~ a,
Sections 2612a and b of the Municipal Code require
that the City Treasurer furnish bond in the amount of
X50,000.00; and that the city Manager, the city Clerk, the
City Controller, their subordinates, and the subordinates
of the Gity Treasurer carry a Public Employees' Faithful
Performance blanket bond providing an aggregate penalty of
$100,000.00.
Application to our own operations of a formula
developed last July by the Surety Association of America
indicates these limits to be too low for adequate protee-
tien,
I recommend, therefore, that the City Attorney be
requested to prepare amendments to the subject soda sections
raising the coverage on each of the bonds mentioned to
$200,000.00.
The total annual cost of the increase will be approxi-
mately $1,283.00® This svm has been provided in the current
bl2dgets
~~-
~/,
w.,
~. A. HARD
City Controller
wAHcvlw